News Desk, News Nation 360 : CRISIL said in its rating rationale that in addition to an enhanced capital structure with debt and leverage reduced to below rating standards, the rating upgrade takes into account Vedanta's anticipated considerable increase in consolidated operating profitability (earnings before interest, tax, depreciation, and amortisation [Ebitda]). CRISIL has upgraded its outlook on Vedanta, with a sharp increase in operating profitability (EBITDA) to over Rs 45,000 crore in fiscal 2025, driven by increased volumes in key segments like aluminium, zinc, and iron ore, coupled with improved cost efficiencies and sustained high metal prices. This positive outlook is further supported by the expected completion of the ongoing capital expenditure, which is expected to improve capacity and operational efficiency, especially in the aluminium business. This upgrade follows a similar move by ICRA in September, which recognized Vedanta's strengthened credit profile. CRISIL also acknowledges Vedanta's proactive efforts to reduce debt, including recent fundraising initiatives and stake sales, which have collectively raised USD 1.9 billion. The rating agency expects a further decline in debt after FY 2025, thus signalling a positive trend for the company's health. CRISIL said that the rating agency also emphasises Vedanta's lower production costs and resilience to commodity business cyclicality as significant factors. The Vedanta group is involved in several industries, including steel, iron ore, lead, silver, aluminium, oil and gas, and zinc. The firm has a strong position in the domestic market because it is one of the biggest producers in each of these categories. A business risk profile that is well-diversified protects the group against cyclicality and hazards particular to commodities.
